Banks Can Now Treat Blockchains Like SWIFT, ACH
Happy Tuesday, Blockfolians
The Lede
In what some are calling the biggest crypto regulatory news ever, a new interpretive letter from the Office of the Comptroller of the Currency has suggested that federally regulated banks should be treating blockchain networks like existing payment rails including SWIFT and ACH. Additionally, they can be considering using stablecoins as a settlement solution.
The news broke last night and Crypto Twitter just about lost it:
Now, of course, there is some controversy around the OCC and its leader, former Coinbase legal chief Brian Brooks. It is an open question about whether his nomination for a new 5-year term will even be voted upon.
Still, this feels like a genie-out-of-the-bottle moment that will have ripple effects for a very, very long time.
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Highly Relevant Reading
In the latest bad news for beleaguered Ripple, XRP has been dropped from Grayscale’s large cap crypto fund
Jack Dorsey and Square among the companies speaking out against new potential crypto wallet rules
UK crypto derivative ban set to go in effect on Wednesday
Meanwhile, open interest on Ethereum derivatives just hit a new ATH
Community Commentary
Another good take (this one from Kraken) on why the new proposed wallet regulations are bad for regulators
A really interesting argument that the OCC’s rules have big implications for the geopolitical CBDC game
A Really Big Number We Should Be Paying Attention To
$146,000
That’s a new price prediction from JPMorgan - a far cry from some of their earlier <ahem> thoughts on BTC
Final Thought
Is Bitcoin a religion?